A new commodity (super)cycle ahead ?

Commodities have now reached a 50 year low against overall equity markets. We can think of many arguments on why this will change as demand for commodities should remain sustained once economic uncertainties become less and will for sure be fuelled by the transition to cleaner energy. Also some equity valuations remain high in a concentrated equity market on a few mega-caps (especially in the tech sector) whose high multiples are sensitive to interest rates. Commodity producers and engineering companies catering towards the sector should be prime benefiters from a new commodity cycle. We are invested for our clients in companies generating solid cash flows and dividends and still trade at low valuations ( e.g. Boliden, TotalEnergies, Sandvik, FLS, … ).